As per the statement given by the authority of advance ruling while calculating the threshold limit for obtaining GST registration the value of exempted incomes like interest on PPF, savings bank accounts, and loan given to the family and friends will be included along with the taxable supplies. Under the goods and service tax laws, every business and individual is required to obtain GST registration if aggregate turnover is rupees 20 lakh or more.

An individual, not engaged in any business, had filed an application before the Gujarat bench of AAR asking whether interest received from the savings bank, PPF, and loans and advances to the family would be considered for the purpose of calculating the threshold limit of Rs 20 lakh for registration under GST law.

The individual, in his application, had disclosed that his total receipts in 2018-19 fiscal were about Rs 20.12 lakh, including rent receipt of Rs 9.84 lakh, while the remaining was interest on the bank, PPF deposits and from personal loans extended to friends/family.

The AAR, while ruling that interest income would be included for calculating registration threshold, said that the applicant is required to consider the value of both taxable supply i.e. “renting of immovable property” and exempted supply of service provided by way of extending deposits, loans or advances for which he earned interest income, to arrive at “aggregate turnover” to determine the threshold limit for the purpose of obtaining registration under the GST Act.